Category: Business

The directive was issued in a letter addressed to directors of finance across all government institutions on April 14, 2026.

The measure is part of Rwanda’s broader plan to reduce emissions by 38% by 2030. Vehicles are estimated to account for about 12% of the country’s total emissions.

Among the strategies already in place is the promotion of electric mobility in public transport. In the City of Kigali, the number of electric buses has been steadily increasing, alongside the growing use of electric motorcycles.

According to the letter, all public institutions are required to ensure that at least 30% of newly procured vehicles are electric, starting immediately. This is intended to help lower emissions, reduce dependence on fossil fuels, and promote sustainable, clean transport.

The Ministry emphasized that all institutions must comply with the 30% requirement. In cases where the calculated share results in less than one vehicle or requires rounding, priority should still be given to purchasing electric vehicles. Any deviation from the directive must be justified and approved in advance by the Ministry.

Data shows that 43% of vehicles imported into Rwanda are hybrid models.

In terms of buses, 2,084 units were imported in 2021, increasing to 2,287 in 2022, and 2,892 in 2023—reflecting an average annual growth rate of 17.8%.

Electric vehicles currently available in Rwanda include models from South Korean manufacturers Kia and Hyundai, as well as Chinese brands such as BYD and Dongfeng. Other models include those from Nissan and Toyota, particularly the RAV4 hybrid.

By 2024, Rwanda had 512 fully electric vehicles, alongside 7,172 hybrid vehicles. These figures do not include electric buses.

The government recently acquired 300 buses for use in Kigali’s public transport system, some of which are electric.

Meanwhile, the agency responsible for public transport has announced that upcoming shuttle services from Kigali International Airport to various hotels will soon be operated exclusively by electric vehicles.

The country has consistently prioritised attracting investment as a means of improving livelihoods and expanding its industrial base. As a result, manufacturing sectors spanning metals, food processing, textiles, and other consumer goods continue to grow steadily, supported by ongoing construction of new industrial facilities.

Speaking on the initiative, Minister of Trade and Industry Prudence Sebahizi highlighted that Rwanda is exploring mechanisms to add value to textile inputs by processing African cotton into yarn, which will then be transformed into fabrics for local use. This approach is expected to significantly reduce dependence on imported textiles.

Sebahizi noted that nearly 40 percent of Africa’s cotton production is concentrated in just two countries, a factor that underscores the importance of leveraging regional resources.

He revealed that an investor is set to establish operations in the Bugesera Special Economic Zone, where cotton sourced from across Africa will be processed into yarn and subsequently into fabric, which will then be used in garment manufacturing within Rwanda.

“This will reduce reliance on imported fabrics, including those from countries such as China,” Sebahizi said.

Beyond textiles, Rwanda is also placing strong emphasis on value addition across its agricultural sector. Authorities are encouraging the transformation of raw agricultural products into a diverse range of processed foods before they reach the market.

This model, widely adopted in developed economies, enables a single crop such as rice or cassava to generate multiple food products, thereby increasing economic returns and market resilience.

The government is further investing in expanding domestic manufacturing capacity in other sectors. In the construction industry, efforts are underway to boost tile production using locally available minerals, with companies like Mountain Ceramic Company Ltd in Muhanga District contributing to increased local output.

Similarly, Rwanda’s metals sector is gaining momentum. A1 Iron and Steel, located in Musanze District, is producing steel from processed mineral resources, while a glass manufacturing plant in Kicukiro District has commenced operations using melted sand. Although the plant currently supplements production with imported materials, plans are in progress to fully localize the technology and raw material sourcing in the future.

In 2025, the Government of Rwanda reaffirmed its commitment to strengthening the domestic garment industry, setting an ambitious target of increasing access to locally produced clothing from just 5 percent of the population to full national coverage.

With more than 1,300 manufacturing industries currently operating across the country, Rwanda’s industrialisation drive continues to gain momentum, positioning the nation for greater economic self-reliance and sustainable growth.

What is taking shape across western Rwanda, environmental leaders say, is more than land restoration, it is a synergy between climate action and human development.

“MuLaKiLa shows that restoring landscapes is not only about nature, it is equally about people,” says Dr. Sam Kanyamibwa, Founder and CEO of ARCOS, the organization implementing the project on the ground. “When farmers are empowered with knowledge and financial resources, conservation becomes a pathway to dignity, resilience, and long‑term development.”

That philosophy underpins the MuLaKiLa Project, a large‑scale landscape restoration and livelihood initiative operating around the Mukura–Gishwati Forest and the Lake Kivu catchment landscape.

According to Dr. Amani MABANO, Project Manager of MuLaKiLa, this carbon project was officially launched in 2023 to restore 22,266 hectares (ha) of degraded agricultural land and improve the livelihoods of 40,000 smallholder farmers’ households owning the land in Ngororero and Rutsiro districts.

The land is being restored through two key initiatives: tree plantation and establishment of radical and progressive terraces. The project aims to plant 6 million carbon trees comprising native (50% of the trees), fruit (30% of the trees), exotic (20% of the trees) species.

The radical terraces to be established on 2,400 ha and progressive terraces will cover 7,739 ha. The establishment of these terraces comes with package of organic manure, lime, shrubs, elephant grass, and seeds for the agriculture season following the construction of the terraces. As of March 2026, 5.7 million trees have been planted and radical terraces established on 1,650 plus 5,208 ha of progressive terraces.

The livelihoods of local communities will be improved through several initiatives, including a well-designed set of training modules, increased crop yield, employment, tree maintenance incentive, value chain development for different agro-products, implementation of green projects funded through the Umusave Fund (an NBCF), and carbon benefit sharing.

“Thus, the project intends to build resilience to climate change for the vulnerable landscape and its residents,” says Amani.

For farmers like Ildephonse Bizimana, a smallholder in Rutsiro District, the results are already tangible.

“Before the project, rain used to wash away our soil and our harvests were poor,” he says. “Now, with terraces and trees on my land, the soil is stable and my crops are growing better. I can already see the difference in my yields.”

For Devota Uwajeneza, a farmer in Ngororero District, the impact has reshaped farming itself.

“Before, we cultivated but never harvested enough,” she says. “Now the terraces hold water, the soil is getting fertile again, and even during heavy rains, our fields remain intact.”

From the outset, communities have been central to the project’s design and execution. The initiative operates entirely on smallholder land and has engaged farmers and local leaders through village‑level consultations since its inception.

“These farmers are our key stakeholders,” Amani underlines. “They were involved from the beginning and are the drivers of implementation.”

Beyond land restoration, MuLaKiLa targets economic resilience through the Nature‑Based Community Fund (NBCF), a revolving financing mechanism established in 73 cells across the project area. In 2024, €840,000 was deposited into the fund. By early 2026, communities had launched around 450 green projects, with nearly 900 million Rwandan francs invested in climate‑friendly enterprises.
For Kankindi Chantal, one of the beneficiaries, access to the fund was decisive.

“Through the community fund, our association was able to invest in livestock farming,” she says. “We repaid the loan and earned enough to plan to upscale our project. We are no longer just farming to survive; we are farming as a business.”

All loans have been fully repaid, with interest, an outcome project leaders describe as evidence of growing confidence and financial discipline among communities.

Training has reinforced this transformation. Farmers receive instruction in project management, nursery establishment, and sustainable agricultural practices, alongside basic farming tools and continuous technical support.

“The training also changed how we think,” added Chantal Kankindi. “We now plan, set objectives, and work together. Even when the project ends, these skills will remain with us.”

MuLaKiLa is also structured as a carbon project, allowing communities to benefit directly from climate action. Farmers receive annual incentives to maintain planted trees, while a share of revenue from carbon credits will be returned to communities.

“They are the stewards of the land,” Amani says. “So they should benefit from protecting it.”

The project is the result of collaboration among farmers, district authorities, national institutions, and partners such as Reforest’Action, the project developer. Mabano also credits AstraZeneca for providing the financial support that made the initiative possible.

Much work remains before MuLaKiLa reaches full maturity. But across western Rwanda’s hillsides, terraces are holding, trees are growing, and farmers who once watched their land degrade are now planning for the future.

“What makes us proud,” Amani says, “is when communities succeed. That is when our project succeeds.”